OpenAI has firmly rejected a Wall Street Journal report suggesting the company plans to leave California, labeling it as “a work of fiction.” An OpenAI spokesperson emphasized their pride in being California-based and confirmed no relocation plans. This assertion comes as OpenAI navigates a challenging transition from a nonprofit to a public benefit corporation (PBC), facing backlash from California’s largest philanthropies and labor groups. Critics, including civic leaders and former employees, have expressed concerns about the company abandoning its commitment to developing safe, equitable AI. OpenAI’s restructuring plan aims to have its nonprofit hold only a minority stake in the new for-profit entity. Amid pressure from investors and the attorney general’s scrutiny, OpenAI is determined to proceed with its restructuring, which is vital for securing approximately $19 billion in funding. The company continues to engage with California and Delaware’s Attorneys General to align its plans with legal and ethical standards.
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